Auditors say FY2023 single audit remains open as FEMA worksheets, formats stall clearance

BDO auditor Joy Mariner told the Anchorage Municipality Municipal Audit Committee on Oct. 30 that ‘‘the only thing remaining on the 2023 audit is the single audit.’’ Auditors said they have received documents but not in audit‑ready formats and are requesting either consolidated Excel files or permission to convert PDFs into a single Excel workbook for submission to the federal clearinghouse.

The audit firm said FEMA project worksheets (PWs) are the main outstanding issue because federal rules require FEMA amounts to be reported based on project‑worksheet approval (‘‘obligated’’), not when expenditures occur. ‘‘Each project worksheet has attached to it, in theory, a detail of the expenditures that you’re requesting under that project worksheet,’’ Mariner said, and BDO estimates roughly 60 PWs may need consolidation and reconciliation to produce the federal and state schedules.

BDO offered to perform the administrative consolidation and formatting and estimated that work at ‘‘around $3,000’’ (they cited a range of $2,000–$3,000), describing the task as largely clerical once source files are provided. The firm also told the committee that the 2023 contract covers four federal major programs but that auditors currently identify five programs for FY2023; the committee must decide whether to amend the 2023 contract, draw on the 2024 consulting budget, or authorize another funding route to cover the fifth program.

Administration finance staff told the committee they are aligned with auditors ‘‘to move expeditiously’’ and urged completion as soon as possible. BDO noted the municipality has passed the single‑audit nine‑month submission deadline (which the firm said would have been last September) but reported no formal sanctions or agency notifications to date; auditors cautioned that an agency may later issue a notice that requires corrective work with as little as 30 days’ notice.

BDO provided an estimate of remaining effort for 2023 testing: roughly 400–500 hours still to be completed out of a budget that, including FEMA work, they said could total approximately 750–900 hours. Auditors asked the committee whether the municipality preferred the firm to complete the formatting and FEMA consolidation under the 2024 consulting allotment or to amend the 2023 contract; municipal finance staff said they would seek two quotes from BDO and that the CFO may use remaining internal budget authority to cover some expenses.

Committee members did not take a formal vote during the meeting. The committee asked auditors to proceed as quickly as possible and requested regular status updates on outstanding single audit items.

The single‑audit schedule and final program determinations remain subject to confirmation once auditors receive the requested PW detail and federal/state schedules in audit‑ready formats.